• 09 October, 2017 News

    Corona brewer shares hit record high after profit jump, guidance lift
    Shares in Corona owner Constellation Brands were fizzing last Thursday Corona brewer shares hit record high after profit jump, guidance lift

    Shares in Corona owner Constellation Brands were fizzing last Thursday, after opening at a new record high. This development came after the US brewer developed better-than-expected second quarter earnings and raised its guidance for the whole year.

    Overall, net income at the beer group climbed 39 per cent to $499.5m in the three months to August, which was helped by bumper sales of its Mexican Modelo brand over the key summer selling season. Additionally, margin gains from its brewers, favourable selling prices and foreign currency benefits also pushed earnings higher.

    Reported earnings per share hit $2.48 in the group’s second quarter, overall this prompted the group to boost its full year outlook for the second time in less than four months. The company now expects full year comparable earnings per share to be roughly $8.25 to $8.40, higher from previous guidance in June of $7.90 to $8.10.

    The company has ridden a wave of enthusiasm for high-end beer, and extended its portfolio. Now its portfolio includes/offers Pacifico beer, with the acquisition of Florida-based craft beer maker Funky Buddha.

    From Wednesday’s close, shares heightened by roughly 6 per cent for the company, ultimately hitting $2.13.4 dollars per share. Overall, Constellation’s shares have heightened by more than 500 per cent in the past five years.

    Sales in the beer division, which accounts of approximately two thirds of total sales at the group, heightened by roughly 13 per cent in the latest quarter. As a result, this more than offset declined in the wine and spirits portfolio, which includes Robert Mondavi Private Selection, Kim Crawford, and SVEDKA vodka brands. Moreover, total net sales grew by roughly 3 per cent to $2.085bn.

    Contact one of our brokers today at, www.forex.ltd.uk.


    Abi Moses

Latest News